More than 100 first-generation students who had scored more than 80% in their Class 12 examination and allotted seats in engineering colleges are struggling to get admission because banks have refused to provide them loans without a bona fide certificate from the college concerned, a Chennai-based NGO, Velicham, revealed on Friday. This is in contrast to the Centre’s directive to nationalized banks to extend educational loans to eligible candidates even without any collateral.

Students attending engineering counseling have to pay an advance of 5,000. After the seat is allotted, the students have to pay the college fees within 15-20 days, failing which the seats are forfeited. Students also cannot apply for bank loans without bona fide certificates from colleges which provide the certificates only after the full annual fees is paid. So the parents are being compelled to borrow from private lenders with huge interest.

“Many brilliant poor students are facing difficulties to get loans from banks and many of them attempt suicide,” the NGO said. The NGO has set up a helpline (9698151515) for those in distress.